U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-29-2011, 06:44 AM
 
357 posts, read 874,621 times
Reputation: 202

Advertisements

I bough the house in 2007 for $210,000 mortgage interest rate is %7.00. the most recent sell in my area was $79,000.
should i just walk away from $180,000 mortgage ?.
Reply With Quote Quick reply to this message

 
Old 09-29-2011, 07:16 AM
 
Location: Plano, Texas
1,676 posts, read 6,457,339 times
Reputation: 686
morally...no; financially...yes

Where is your home?
Reply With Quote Quick reply to this message
 
Old 09-29-2011, 08:01 AM
 
Location: Scottsdale, Arizona
1,271 posts, read 4,625,593 times
Reputation: 1124
Do you consider it a home or an investment? Just because it is underwater now is not reason to walk away from your obligations. And folks wonder why the housing mess goes on and on.....
Reply With Quote Quick reply to this message
 
Old 09-29-2011, 08:59 AM
 
28,430 posts, read 70,779,494 times
Reputation: 18364
Even in the face of extraordinary declines in value the real question of why one would want to welch out on a financial obligation has more to do with your future plans than the present value of the property that secures the mortgage.

Firstly, where would live? Would you be OK with renting? The odds of any lender writing a mortgage for a person that has demonstrated a disregard for previous financial obligations is remote...

Secondly does the property have any likelihood of recovering in value over the timemperiod you are likely to want to live in it? If the place was in a slum before it boomed in value maybe you as a buyer should have held off on buying it.OTOH if the area is nice and prospects down the road look good many in 15 years or whatever this will be a good value...

Thirdly what is you long term need for credit? If you doubt you will ever want / need to borrow again for any purpose from CB radio from Radio Shack to honeymoon trip to new car then go ahead and destroy it, otherwise you should at least try and negotiate with the lender to minimize the impact on your ability to borrow down the road.
Reply With Quote Quick reply to this message
 
Old 09-29-2011, 09:10 AM
 
357 posts, read 874,621 times
Reputation: 202
the house is in Florida. i am retired, i would not concern about long term credit.
my concern is ranting may be come an issued with bad credit.
Reply With Quote Quick reply to this message
 
Old 09-29-2011, 09:26 AM
 
65 posts, read 145,509 times
Reputation: 65
Wabanaki -- do you have financial issues that are making it difficult for you to meet you current obligations? Or are you just looking to get out of the mortgage because you are so far underwater?

If you have a financial hardship, have you contacted your lender to discuss what options you might have, including a short sale? Have you talked to a real estate agent, lawyer or financial advisor about your options? If not, you should, because you might have some.

But realize that if you don't have a hardship, you may find it difficult to get your lender's agreement (and more importantly, the agreement of the investor who now owns your mortgage) to any sort of modification of the loan or a short sale of the property. Being underwater in and of itself isn't generally considered a hardship.

The credit bureaus are taking a more strict view of "strategic defaults" (i.e., walking away only because a loan is underwater with no other financial hardship), and they can impact your credit score like a foreclosure. This will make it hard for you -- and everyone else listed on your mortgage -- to buy or rent another home without significant expense.

Given that, if you can afford the payments where you are, you might be better off staying where you are and not worrying about whether your loan is underwater. You need someplace to live, after all.

This is a complicated decision with a lot of factors at stake and a lot of different ramifications for you in the future. You need professional advice about this.
Reply With Quote Quick reply to this message
 
Old 09-29-2011, 02:45 PM
 
Location: Albuquerque
5,549 posts, read 14,188,228 times
Reputation: 2700
Quote:
Originally Posted by jm1031
... if you don't have a hardship, you may find it difficult to get your
lender's agreement ... This is a complicated decision with a lot of factors ...
One of the factors is how much is it costing to pay the mortgage and how much income is available on a monthly basis?

From an investment standpoint, the house looks hopeless.

Quote:
Originally Posted by chet everett
... does the property have any likelihood of recovering in value ...
More specifically, what is the likelihood of the house doubling in value any time soon?

For a retired person, I'm guessing the likelyhood is between diddly and squat.
Quote:
Originally Posted by jm1031
The credit bureaus are taking a more strict view of "strategic defaults" ...
I've got a 2007 house with a similar interest rate, just not so underwater as wabanaki's.

I applied for a mod after Wells Fargo told me to go that route ( said "no way"
to a conventional refi ). Every time I was denied ( wabanaki will also be denied )
they offered a Deed In Lieu or a Short Sale as an option.

I don't know if every servicer is doing that or not, but I wonder if the credit
bureau looks at Strategic Default the same was as they do Deed In Lieu?
One if offered or agreed to by the servicer - the other is forced on the servicer.

I assume that Wells would not have offered the Deed In Lieu if I was not current
and I assume that wabanaki is current ( but that is also a question in this thread ).

Another big question is does wabanaki like living in the "under water(mortgage) house."
One has to live somewhere. I didn't take the Deed in Lieu because I love my house ...

... I just hate my bank ( servicer ). ... and Barney Frank ... and Goldman Sacks ...
Reply With Quote Quick reply to this message
 
Old 09-29-2011, 04:31 PM
 
357 posts, read 874,621 times
Reputation: 202
i talk to BOA 3-4 times in the past year, to see if they would agree to do loan modification for lower interest rate. BOA told i am not eligible for that plan, since i have made the monthly mortgage payment up to current. it would be help if BOA would reduce int rate to say 4 - 4.5 %, the new payment amount would help not to cut back on every thing else and to make sure the mortgage is paid.
Reply With Quote Quick reply to this message
 
Old 09-30-2011, 06:45 PM
 
Location: Anchorage
787 posts, read 1,480,517 times
Reputation: 810
Quote:
Originally Posted by chet everett View Post
Thirdly what is you long term need for credit? If you doubt you will ever want / need to borrow again for any purpose from CB radio from Radio Shack to honeymoon trip to new car then go ahead and destroy it, otherwise you should at least try and negotiate with the lender to minimize the impact on your ability to borrow down the road.
I guess I agreed with you too often ... can't rep anymore
Anyway, I agree!
Reply With Quote Quick reply to this message
 
Old 09-30-2011, 06:46 PM
 
Location: Anchorage
787 posts, read 1,480,517 times
Reputation: 810
Quote:
Originally Posted by wabanaki View Post
my concern is ranting may be come an issued with bad credit.
it sure would!
Quote:
Originally Posted by jm1031 View Post
Given that, if you can afford the payments where you are, you might be better off staying where you are and not worrying about whether your loan is underwater. You need someplace to live, after all.
yep, treating it as a rent arrangent of sorts... still, money for a roof over your head
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 02:03 AM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top